Correlation Between APPLIED MATERIALS and Ubisoft Entertainment
Can any of the company-specific risk be diversified away by investing in both APPLIED MATERIALS and Ubisoft Entertainment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining APPLIED MATERIALS and Ubisoft Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APPLIED MATERIALS and Ubisoft Entertainment SA, you can compare the effects of market volatilities on APPLIED MATERIALS and Ubisoft Entertainment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in APPLIED MATERIALS with a short position of Ubisoft Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of APPLIED MATERIALS and Ubisoft Entertainment.
Diversification Opportunities for APPLIED MATERIALS and Ubisoft Entertainment
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between APPLIED and Ubisoft is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding APPLIED MATERIALS and Ubisoft Entertainment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubisoft Entertainment and APPLIED MATERIALS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on APPLIED MATERIALS are associated (or correlated) with Ubisoft Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubisoft Entertainment has no effect on the direction of APPLIED MATERIALS i.e., APPLIED MATERIALS and Ubisoft Entertainment go up and down completely randomly.
Pair Corralation between APPLIED MATERIALS and Ubisoft Entertainment
Assuming the 90 days trading horizon APPLIED MATERIALS is expected to generate 0.84 times more return on investment than Ubisoft Entertainment. However, APPLIED MATERIALS is 1.19 times less risky than Ubisoft Entertainment. It trades about 0.24 of its potential returns per unit of risk. Ubisoft Entertainment SA is currently generating about -0.06 per unit of risk. If you would invest 15,902 in APPLIED MATERIALS on October 11, 2024 and sell it today you would earn a total of 1,124 from holding APPLIED MATERIALS or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
APPLIED MATERIALS vs. Ubisoft Entertainment SA
Performance |
| Timeline |
| APPLIED MATERIALS |
| Ubisoft Entertainment |
APPLIED MATERIALS and Ubisoft Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APPLIED MATERIALS and Ubisoft Entertainment
The main advantage of trading using opposite APPLIED MATERIALS and Ubisoft Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APPLIED MATERIALS position performs unexpectedly, Ubisoft Entertainment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ubisoft Entertainment will offset losses from the drop in Ubisoft Entertainment's long position.| APPLIED MATERIALS vs. Apple Inc | APPLIED MATERIALS vs. Apple Inc | APPLIED MATERIALS vs. Apple Inc | APPLIED MATERIALS vs. Apple Inc |
| Ubisoft Entertainment vs. Gaztransport Technigaz SA | Ubisoft Entertainment vs. APPLIED MATERIALS | Ubisoft Entertainment vs. Eagle Materials | Ubisoft Entertainment vs. NTG Nordic Transport |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |